One of the largest private equity giant Blackstone Group LP has agreed to buy a commercial property in Chennai from Indiabulls Real Estate Ltd at a cost of Rs 850 crore which is $123 million.
The transaction is part of Indiabulls Real Estate’s decision to recognize its commercial leasing business in India and exit non-core markets, the Mumbai-listed developer said in a statement on Sunday.
The property, One Indiabulls, covers an area of a 1.9 million sq ft and is rented out to some of the big companies such as Royal Bank of Scotland, Vodafone, Britannia Industries Ltd and state-run BSNL Ltd. The transactions between them is going to close by 30th of September 2019 by the mutual decision.
Indiabullls had, in March, struck a deal to sell a 50% stake in two commercial properties in Mumbai—Indiabulls Finance Centre and One Indiabulls Centre—to Blackstone in one of the biggest PE deals in the Indian real estate sector. It had also agreed to sell its commercial and residential projects in Chennai at the time in a separate transaction.
“The company’s board constituted committee has today authorized execution of definitive transaction document(s) with the entities controlled by the Blackstone Group L.P., by which Company will divest its 100% stake in the business of commercial assets at Ambattur, Chennai, being a non-core real estate business operations for the company,” Indiabulls Real Estate said in a regulatory filing.
The company says it has been restructuring its commercial and residential businesses for sustainable growth.
Blackstone, which is one of the top owners of commercial property in India, continues to invest in both commercial and retail segments to expands its brand among the people.
Just before this year in the year 2017, it bought into the commercial unit of Mumbai-based developer K Raheja Corp. Before that, it picked up a stake in First International Finance Centre (FIFC) at the Bandra Kurla Complex in Mumbai.
Of late, the firm has been in the limelight for eyeing stressed real estate funds. Blackstone was one of the bidders for the maiden real estate fund of IL&FS PE and was in talks to acquire Anand Jain-led Jai Corp’s residential real estate fund.
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